HKScan Corporation               Stock Exchange Release 10 August 2012 at 7:45am


HKScan reshapes its strategy, the Group’s management and operating model and organisation



HKScan has redefined its strategy. According to the new strategy, the Group will concentrate in particular on improving profitability by building up brand value and demand, by improving operational efficiency, by actively managing the dynamics of future business and by developing its capital structure and Group reporting.

As part of the strategy, HKScan will reform the Group’s management and operating model in order to harmonise, simplify and enhance internal processes and cultures. The need for simplifying the structure occurred over the last few years as the Group has undergone a period of strong expansion and internationalisation.

By removing current overlapping, HKScan will clarify and speed up its main processes that are of key importance to customers and consumers. This will improve the efficiency of operations and make information more readily available for decision-making.

“It is of particular importance that HKScan continues to manage and secure the availability, quality and price of raw materials and other production factors required for customer deliveries in a responsible manner throughout the long value chain,” says CEO Hannu Kottonen.


HARMONISATION OF BUSINESS OPERATIONS AND BUILDING UP GROUP FUNCTIONS

With the new Group-wide operating model, HKScan will reform and harmonise the Group’s business operations based on customer segments and distribution channels. In addition, the Group will build up new Group functions for its current market areas. The company will also reform the Group reporting to better support the businesses, the new operating model, the organisation and Group management.

HKScan will introduce the operating model gradually by the end of 2013. The work for building up unified Group functions has already begun. The reform will not affect the Group’s external reporting.

The businesses involved in the new operating model are responsible for sales and marketing, product development, in addition to the order-supply chain and production. They are:
1. Consumer, operating in the Group’s main markets in Finland, the Baltics, Sweden and Denmark
2. Away from Home (AFH), looking after Business-to-Business (B2B), Food Service, industrial, export and import businesses on all HKScan markets
3. Sokolów and other joint ventures

The other Group functions supporting the businesses are:
1. Technology and Operations Development, a new function in the Group. It is responsible for raw material and other material purchases, quality processes, development of the order-supply chain and production technology, investments, IT systems and responsibility issues.
2. HR
3. Legal & Administration
4. Finance
5. Treasury
6. Communications
7. Strategy and Strategic Projects, another new function for the Group. It is responsible for strategy projects and continuous development projects as well as for refining the information that supports the business.


APPOINTMENTS IN THE MANAGEMENT OF HKSCAN GROUP

The following appointments have been made in the Management Team and other management of the HKScan Group in conjunction with the strategy update and change of operating model.

M.Sc.(Tech.) Aki Laiho (39) has been appointed Chief Operating Officer responsible for the development of HKScan’s technology and production, deputy to the CEO and member of the management team. He has previously worked at the Aalto University, as an independent entrepreneur, at Sauer-Danfoss Aps and Nokia Corporation. Aki Laiho reports to CEO Hannu Kottonen.

M.Sc.(Econ.) Tuomo Valkonen (45) has been appointed Chief Financial Officer of HKScan and member of the management team. Tuomo Valkonem moves to his position from the post of CFO at CPS Color Group. Tuomo Valkonen has previously worked for Rautaruukki, Savcor, Kyrö and Metsäliitto. Tuomo Valkonen reports to CEO Hannu Kottonen.

The current CFO Irma Kiilunen will continue as Group Treasurer of HKScan, reporting to Hannu Kottonen.

M.Sc.(Econ.) Jukka Nikkinen (49) has been appointed Executive Vice President of the Away from Home Business and member of the management team. He joins HKScan from the position of Rautakirja Oy’s director responsible for strategy and business development. Prior to that, in 2002–2004, he was the director of R-kiosk’s international operations. Before Rautakirja, Nikkinen has held several positions in the Leaf Group during 1988–2001, as export and marketing director and other positions.
Jukka Nikkinen reports to CEO Hannu Kottonen.

M.Sc.(Econ.)
Samuli Eskola
(38) has been appointed Senior Vice President responsible for HKScan’s strategy and strategic projects. He moves to this position from within the HKScan organisation where he has held several managerial positions since 2007. Samuli Eskola reports to CEO Hannu Kottonen.

M.Sc.(Econ.) Pekka Kuokka (55) has been appointed Senior Vice President responsible for ICT at HKScan’s Technology & Operations Development. Pekka Kuokka will also act as the Group’s Purchasing Director (in addition to his main position) responsible for purchasing categories other than primary production and meat raw materials. He joins HKScan from the West-South European regional operations of Kone Corporation where he was responsible for business planning from the beginning of 2011. Prior to that, he worked for Kone Corporation in several international positions, responsible for the financial and IT functions of Kone Iberica and Giant Kone China. Pekka Kuokka reports to Aki Laiho.


FROM 1 SEPTEMBER 2012, THE MANAGEMENT TEAM OF HKSCAN WILL BE COMPRISED AS FOLLOWS:


 

Hannu Kottonen, CEO; Aki Laiho, COO; Tuomo Valkonen, CFO; Anne Mere (EVP), Executive vice president of Finland and the Baltics; Denis Mattsson, (EVP), Executive vice president of Sweden and Denmark; Jukka Nikkinen, EVP, Away from Home Business; Sirpa Laakso, EVP, HR; and Markku Suvanto, EVP, Legal & Administration, who also acts as the Secretary of the Management Team.

More detailed introductions of the Management Team Members will be available from 1 September 2012 at www.hkscan.com.


HKScan Corporation

Hannu Kottonen
CEO


Further information:
CEO Hannu Kottonen, HKScan Corporation. You can ask him to call you back by contacting Marjukka Hujanen, tel. +358 10 570 6218.


HKScan is one of the leading food companies in northern Europe with home markets in Finland, Sweden, Denmark, the Baltic countries and Poland. HKScan manufactures, sells and markets pork and beef, poultry products, processed meats and convenience foods under strong brand names. Its customers are the retail, Food Services, industry and export sectors.
In 2011, it had net sales of EUR 2.5 billion and some 11 400 employees. www.hkscan.com



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